Finance Minister Nirmala Sitharaman announced financial support of Rs 200 billion for approximately 0.35 million incomplete housing projects (non-NPA and non-NCLT) in the affordable and middle-income segment.
Projects that have been declared as non-performing assets by a bank and the promoters of which have been taken to the National Company Law Tribunal by the creditors, will not be benefitted with this move.
The fund will come to the aid of projects that are about 60 per cent complete but are in need of additional funding for further construction.
Although the government is set to provide Rs 100 billion, it will gather an equivalent amount from institutions like the Life Insurance Corporation of India and other private sector entities. The entire fund will be handled by experts and professionals well versed in the housing sector.
The decision comes at a time when most real estate developers are coping with severe financial stress, in turn resulting in incomplete projects and affected buyers.